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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Health Services Agency
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DATE:
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June 7, 2004
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BOARD MEETING DATE:
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July 27, 2004
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TO:
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Honorable Board of Supervisors
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FROM:
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Charlene A. Silva, Director of Health Services
Lisa L. Mancini, Director of Aging and Adult Services
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SUBJECT:
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Agreement with The Brauner Company
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Recommendation
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Adopt a resolution authorizing the President of the Board of Supervisors to execute an Agreement with The Brauner Company for Fiscal Years 2004-2007
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Background
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Aging and Adult Services (AAS) provides protective and supportive services, case management, and conservatorship services to functionally impaired adults and seniors. Supportive services provided by AAS include the Public Guardian/Conservatorship Program, which serves frail elderly, physically, and/or mentally disabled residents who are substantially unable to provide for their own personal needs of health, food, clothing, or shelter and/or are unable to manage their financial resources or resist fraud or undue influence.
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The Public Guardian, acting under the authority and direction of the Superior Court, may be appointed for the person, for the estate, or for both. The general duties of a Conservator of the Person include arranging for the person’s care and protection, deciding where the person will live, making arrangements for health care, meals, clothing, personal care, housekeeping, transportation, and recreation. The general duties of a Conservator of the Estate include managing the person’s finances, marshalling and protecting the assets, collecting all income due to the person, paying all just debts, making investments as appropriate, and representing or arranging representation in all legal matters.
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Discussion
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Broker/Investment services provide a wide range of investment options, information on cost basis of assets for income tax purposes, reports for the court and for monitoring purposes, and consultation on selected cases as part of the Estate Plan process. The Brauner Company participated in and was selected through a Request for Proposals process completed in April 2004 for Broker/Investment services ending June 30, 2007.
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In consideration of the services provided as described above and according to local court-established commissions for sales, The Brauner Company will be paid directly from the clients’ portfolios a fee based on an annual percentage rate of one percent (1%) of the value of assets under management. The fee is calculated monthly and is deducted directly from the clients’ accounts. The average monthly asset amount currently under management is $13.6 million.
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Due to the increase in the number of clients with houses being sold, the increase in net proceeds from those sales, and the increase in the number of clients with existing accounts requiring portfolio management, the value of assets requiring broker/investment services has grown in the past few years at about 15% per year. It is anticipated that the value of conservatee assets requiring broker/investment services will continue to grow in the near future.
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Consistent with contract approval level limitations in County Administrative Memorandum B-1, the Director of Health Services will be authorized to execute amendments and modifications to this agreement, not to exceed $25,000 in aggregate.
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County Counsel has reviewed and approved this agreement as to form and content.
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Vision Alignment
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An agreement with The Brauner Company keeps the commitment of ensuring basic health and safety for all and goal number 8: People - Help vulnerable people - the aged, disabled, mentally ill, at-risk youth and others - achieve a better quality of life. Services provided by The Brauner Company will contribute to this commitment and goal by assisting conservators to optimize management of Public Guardian clients’ assets.
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Fiscal Impact
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The term of the agreement with The Brauner Company is July 1, 2004 to June 30, 2007. The amount of the agreement is not to exceed $150,000 for FY 2004-05, $175,000 for FY 2005-06 and $200,000 for FY 2006-07. The total amount of this agreement for the three-year term is $525,000. Funds for this agreement are reimbursed directly from clients’ personal assets. There is no impact on the County General Fund.
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